Resuscitation devices maker ZOLL Medical (ZOLL) posted solid fourth-quarter fiscal 2011 (ended October 2) results, powered by strong revenues from its flagship LifeVest wearable defibrillator.
Fourth quarter earnings per share of 52 cents outstripped the Zacks Consensus Estimate of 49 cents and the year-ago earnings of 33 cents. Profit soared 65% year over year to $11.9 million as the Massachusetts-based company saw solid growth across the board.
For the fiscal, earnings of $1.39 a share beat the Zacks Consensus Estimate by four cents and sailed past the year-ago earnings of 87 cents. Net income shot up 65% year over year to $31.3 million.
Revenues for the fourth quarter soared 26% year over year to $151.9 million, outpacing the Zacks Consensus Estimate of $142 million. For fiscal 2011, sales climbed 18% year over year to $523.7 million, also exceeding the Zacks Consensus Estimate of $514 million.
Healthy growth was triggered by solid sales from LifeVest and temperature management businesses, backed by higher sales in the North American hospital market. Total order backlog more than doubled year over year to $30 million at the end of the fourth quarter.
Sales to the North American market climbed 27% to $113.9 million in the fourth quarter. Revenues to the North American hospital market spurted 31% to $46.2 million, boosted by solid sales from the company’s U.S. Military business which zoomed 42% year over year to $12.7 million.
ZOLL Medical witnessed recovery in the North American pre-hospital market in the quarter. Revenues from this market rose 10% to $37.3 million. The company’s international sales jumped 24% to $38 million in the quarter.
The company’s LifeVest business continued its strong momentum in the fourth quarter with revenues cruising 52% year over year to $32.1 million. The Temperature Management business was robust, with sales surging 35% of $7.1 million. However, revenues from AutoPulse cardiac support pump dipped 16% to $4.4 million.
Gross margin jumped to 58% in the quarter from 55% a year-ago, benefiting from a better mix of higher margin LifeVest sales and improved pricing in the North American defibrillator business.
ZOLL Medical ended fiscal 2011 with cash and cash equivalents and short-term investments of roughly $75.5 million, up 21% year over year, with no debt. Besides its earnings release, the company also announced that its Board has approved a $50 million share repurchase program.
ZOLL Medical is a leading player in the global market for external defibrillators, a market worth more than $1 billion. In the U.S. defibrillation market, the company competes with Physio-Control, a wholly-owned unit of Medtronic (MDT), and Philips (PHG).
ZOLL Medical’s solid fundamentals, its broad product range, healthy revenue/margin mix and upbeat prospect for LifeVest remain encouraging. Moving ahead, the company expects its LifeVest and Temperature Management franchises to deliver solid growth in fiscal 2012.
Revenues for fiscal 2012 have been projected to increase 17%-19% year over year with the core defibrillator business expected to generate accelerated growth and boost profitability.
